Surprised @ suppliers

[Choppie81]

Evening,

Recently I built a new rig for all our video editing work and due to a change in business strategy (and some covid related reasons) we had to register with hardware suppliers hoping to get better prices for the business than with retailers.

What I couldn't believe were the prices they were charging. I'm talking everything right across the range of they're products. From the regular consumer pc hardware to professional cameras etc.

If I had to buy a new Canon 1DX from the supplier at those prices (after adding VAT) it works out the same or in some cases more expensive than most online retailers. The same goes for pc hardware...

With the new business venture we were going to make quite a bit more purchases of laptops, cameras and hardware. But at those prices I could just as well buy from retailers... now the part of the business is starting to fade away...

How do some people make a living from this or can one negotiate a better rate or discount with the suppliers?

 

[Steamy Tom]

Supplier pricing is like 10-20% better at best from my experience. Obviously varies from item to item, the pc trade game is absolute aids, only the strong survive long term.

 

[Choppie81]

I could probably understand and smile at 15-20% but most I looked at was unbelievable. GB X570 Aorus Elite worked out R400 more expensive than the online retailers. Same with the 1TB Firecuda I'm just looking at.

Even at 10% it would make it worth while for me as I can then order everything I need to at one or two suppliers... instead of shopping around online to get the best deal.

 

[Progenix Oj101]

10% isn’t going to happen when compared to a decently sized online store. Combine their buying power with single digit margins and you’re not going to win. Margins can often be as little as 2%.

 

[Claymore]

I've been buying SSDs from Takealot because they're a fair bit cheaper than Rectron.

 

[My_King]

Can confirm, tried starting a PC hardware business.

 

[Napalm2880]

I've been buying SSDs from Takealot because they're a fair bit cheaper than Rectron.

You've got to wonder then, what is the point of Rectron?

 

[mister]

You've got to wonder then, what is the point of Rectron?

So that takeadump can get a volume discount?

 

[KhoisanX]

How do some people make a living from this or can one negotiate a better rate or discount with the suppliers?

It only makes sense if you're reselling and even then you need volume.
We often ordered batches of servers from one supplier and got decent discounts, but because that's all we really bought it often made little sense to buy things from other suppliers where we got almost no discounts.